Banking and Financial Services
Keep up-to-date with the latest banking and finance news, insights and information in the Australian Banking and Finance industry from financial advisors, experts and associations on Top4 News.
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Big banks tipped to pass on RBA cut

Big banks tipped to pass on RBA cut | Banking and Financial Services | Scoop.it

If the Reserve Bank lowers official interest rates to a new record low on Melbourne Cup day this week, analysts say big banks would pass on the bulk of the cut to borrowers. Financial markets are betting there is roughly a 45 per cent chance of a cut in official interest rates on Tuesday.


One reason for this is the mortgage rate increases by Westpac, Commonwealth Bank, National Australia Bank and ANZ Bank in October, alongside very weak inflation figures. While banks have recently moved independently of the Reserve, several analysts predicted the lenders would come close to matching an RBA reduction this month. A 0.25 percentage point cut in the cash rate would probably result in major banks reducing mortgage rates by at least 0.2 percentage points, several said.

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National Australia Bank profit up 15.5pc to $5.84b, Clydesdale Bank IPO in Feb

National Australia Bank profit up 15.5pc to $5.84b, Clydesdale Bank IPO in Feb | Banking and Financial Services | Scoop.it

National Australia Bank has lifted its full-year cash profit to $5.84 billion and announced details of its exit of low returning assets via a float of Clydesdale Bank in the UK and the sale of its life insurance business to Nippon Life of Japan. The result came in below analyst expectations for a cash profit of $6.26 billion.


In the first 10 minutes of trading on Wednesday morning, NAB shares opened 1.5 per cent lower at $31.92, after trading was halted on Tuesday morning ahead of the results after news of the Nippon deal leaked. NAB shares were trading lower than the rest of the banks in a weaker sector on Wednesday.


Analysts said such a big miss on consensus numbers would ordinarily be punished by the market but this result has lots of moving pieces and has created uncertainty around forecasts.


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NAB plugs into better technology infrastructure to serve customers

NAB plugs into better technology infrastructure to serve customers | Banking and Financial Services | Scoop.it

National Australia Bank expects less risk of outages in its technology infrastructure after moving to a new data centre that plays a critical behind-the-scenes role in $250 billion in transactions daily.


NAB group executive Renee Roberts said the bank was also poised to ramp up spending on customer-facing technology, such as banking apps, after upgrades to back-end systems.


NAB last month decommissioned its decades-old data centre in East Melbourne, which was built on the site of an old petrol station in the 1970s when facilities needed to be close to the city.


A data centre is a like a technological backbone for a bank; every transaction will flow through these servers.


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The surge of Online Banking

The surge of Online Banking | Banking and Financial Services | Scoop.it

A recent study by Roy Morgan reveals that only 6.6% of Australians uses bank adviser or personally interacts with their bank.  Last year, the number was 8.4%.


Over the last 2 years, internet banking usage has decreased as traditional forms of customer interaction was replaced with online channels. Over 90% of Australians rate online banking with “very” or “fairly” satisfied with the online bank portal.  As with the study, the only banks that scored below 90% were ANZ(89.9%), St. George(88%) and Westpac(87.9%).      


It was also noted that the top users of the online bank portals are the high value customers who controls 63% of the total market value of financial services.

Top4's insight:

Banks invested a lot in order to build and maintain online customer portals for their clients.  Consumers should be happy to utilize online banking as it saves the a great deal of time and energy.  

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Insurer to announce new products via education forums

Insurer to announce new products via education forums | Banking and Financial Services | Scoop.it

Ansvar announces unveiling of new products on their latest series of educational forums. The forums entitled Emerging Trends in – Care, Community, Not for Profit and Other Sectors will feature expert analysis designed to help brokers and clients stay up-to-date on the constantly changing landscape of the not for profit sector.

Top4's insight:

Educational forums about insurance and risks will always be valuable as everything now is not only changing but also fast paced. People must be updated on that and how insurance can help with their personal and business needs.

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Australia's housing crisis should be addressed

Australia's housing crisis should be addressed | Banking and Financial Services | Scoop.it

Australia currently faces economic challenges which includes out of control banking and financial system, causing a bubble in the housing prices. The real estate and financing sector have successfully convinced the public that current prices of houses reflect the operations of efficient markets. Turnbull and Morisson should resolve this crisis before the bubble bursts.

Top4's insight:

To protect public interest, the state must do its duty of studying and planning the things that they can do for the economy. A house is a basic commodity, therefore it should be made affordable and available for everyone.

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'Above normal' bushfire threat for the coming bushfire season

'Above normal' bushfire threat for the coming bushfire season | Banking and Financial Services | Scoop.it

The Bushfire & Natural Hazards Cooperative Research Centre (CRC) has released its national hazard note for the coming bushfire season and the results show a higher than usual chance of damage. This is due to the strengthening El Nino in the Pacific Ocean. Spokesperson for Understand Insurance, Campbell Fuller, said that the updated risk outlook gives consumers cause for re-evaluating their insurance needs as bushfires have cost billions of dollars over the past decade.

Top4's insight:

Natural disasters are likely because of climate change. To be resilient, homeowners near disaster prone areas should assess the value of their valuable assets and ensure that they are protected financially.

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Federal Government abandons proposal for bank deposit tax

Federal Government abandons proposal for bank deposit tax | Banking and Financial Services | Scoop.it

Proposed tax of 0.05% on bank deposits was scrapped by the Federal Government and was not legislated.   Prime Minister Tony Abbot declares that Labor's bank deposit tax is dead and that proceeding on a new deposit tax would simply be harming depositors.

Top4's insight:

Australia's bank system is strong and resilient as it doesn't need to impose additional costs to its depositors and investors.  

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RBA not changing interest rate

RBA not changing interest rate | Banking and Financial Services | Scoop.it

The Reserve Bank of Australia's rates remain relatively stable despite the recent turmoil on global markets brought by China's economy. Australian economy maybe growing at a disappointing rate but labour market outcomes were decent.

Top4's insight:

Australian economy shows resilience amid recent events in global markets.   

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Apple Pay in trouble in Australia

Apple Pay in trouble in Australia | Banking and Financial Services | Scoop.it

Probably everyone now knows about Apple's payment service called: Apple Pay. The service was announced in September of the year 2014. It was seen as a service that would easily "take the world", but in reality the service has had some trouble with going global.

Multiple problems occurred when Apple Pay was officially introduced in London.

Next to the problems in London, the usage of the service in the U.S. seems to be a little slow, and now the company is clinched in a stand-off with multiple Australian banks.

Top4's insight:

Apple Pay may actually be refused in Australia, while a few of CEOs' of Australia's largest banks think there are better options.

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10 Crucial mistakes Licensees make.

10 Crucial mistakes Licensees make. | Banking and Financial Services | Scoop.it

This article contains a list of the most common mistakes made by licensees. But don't be afraid, there are also tips given on how to avoid them. 


Number one: not having a compliance committee or not meeting regularly.


make sure to meet at least twice a year.  Ensure that the agenda for the compliance committee reflects the obligations under section 47 of National Consumer Credit Protection Act or better known as "the Act"

 

Number two: Not having a compliance manager.


When doing business in this section it is definitely important to even appoint a compliance manager. This is necessary to supervise the business. They should work in collaboration with the compliance committee.


For the other tips, read the article.

Top4's insight:

If you are a licensee in profession, looking to hire one, or becoming one? Then this article will definitely help you in future enquiries.

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Meet the 3 best financial stocks for your portfolio

Meet the 3 best financial stocks for your portfolio | Banking and Financial Services | Scoop.it

In the capitalist world there’s no escaping the fact that if you control sufficient amounts of capital making money is easier than drinking a glass of water.


The more capital money managers amass under management the higher their revenues, as fees are generally a fixed percentage of funds under management.


Staff costs are usually their biggest expense and the best money managers are scalable in that they are able to grow revenues far faster than staff costs.


Below I explain why the following three businesses exhibit these credentials and are my pick of the financials for long-term growth and income.


Challenger Ltd (ASX: CGF) recently reduced its cost to income ratio to 33.8% which is a record low and impressive number given its size and fact it has two operating divisions in funds management and the provision of annuities.


Magellan Financial Group Ltd (ASX: MFG) is my particular favourite with an astonishingly low cost to income ratio of just 20.6% for the last financial year. This is a reflection of the fact it’s a founder led startup still able to handpick staff despite growing at a gangbusters rate to now manage more than $38 billion in funds under management.


Macquarie Group Ltd (ASX: MQG) is accelerating its focus away from market sensitive activities to retail banking, wealth management and corporate lending as the core of its business. Recent evidence of this shift include two recent multi-billion dollar acquisitions to increase its exposure in aircraft leasing and car dealer financing.

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Banks to reward shareholders at expense of customers as they post record profit

Banks to reward shareholders at expense of customers as they post record profit | Banking and Financial Services | Scoop.it

Bank investors are confident the big four will use their market power to protect profits and shareholder returns by pushing the costs of higher bank capital onto customers.


Ahead of a week when the major banks are expected to report combined earnings of about $30 billion this financial year, fund managers dismissed comments from the banking regulator that they should lower expectations.


Australian Prudential Regulation Authority chairman Wayne Byres last Friday said that rules that have forced banks to hold more capital have made them safer and as such investors should "require marginally less return".


Fund managers told The Australian Financial Review that while "in theory" they agreed with Mr Byres, they would not be rushing out to sell their bank shares.


"It makes sense in financial theory, but when you combine that with a very strong oligopoly, I don't know the elegant financial theory works out in practice," Aurora Funds Management portfolio manager Hugh Dive said.

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Mandatory Credit Card Repayments pushed by CBA

Mandatory Credit Card Repayments pushed by CBA | Banking and Financial Services | Scoop.it

Commonwealth Bank wants to impose a mandatory minimum repayments of up to 2.5% and bar 0% credit card balance transfers.  


The bank's head of retail services told in a Senate inquiry that they never offered 0% rates on balance transfers ast it can cause a "debt trap" to consumers.


Commonwealth bank has about a quarter of the entire credit card market and they already lost customers as they refuse the 0% balance transfers.


Imposing a minimum repayment of interest and principal has been introduced in UK.  Imposing a minimum repayment can also help customers in paying down their debt levels.


He said the minimum repayment should be up to around 2.5%t. CBA moved its own minimum repayment up from 1.5% to 2% in 2008. Some customers have had difficulty reaching the repayment limit, but these difficulties were overcome.


Top4's insight:

While this can be burdensome to clients, a minimum repayment can also teach consumers a thing or two on spending wisely and paying debts.   

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Energy sector hits one-month high in ASX

Energy sector hits one-month high in ASX | Banking and Financial Services | Scoop.it

The energy sector was among the day's winners on ASX 200 as its players' stocks closed high. Liquefied Natural Gas soared 21.6 per cent to $2.08, AWE Limited shot up 15.1 per cent to 84¢, Santos gained 11.9 per cent to $5.07 and Origin Energy rose 9.7 per cent to $6.10. DrillSearch Energy rose 9.2 per cent to 59.5¢, rounding out the top five best performing stocks of the day. Resources stocks also gained, with the materials sector up 1.6 per cent. Rio Tinto added 3.3 per cent to $52.18 and BHP Billiton rose 1.6 per cent to $24.26. Fortescue Metals Group rose 6.3 per cent to $2.10.

Top4's insight:

Good performance in the stock market shows that Australia's energy sector plays a huge part in bolstering the Australian economy.

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Snapchat: SME's new social media secret weapon

Snapchat:  SME's new social media secret weapon | Banking and Financial Services | Scoop.it

Snapchat has gained its popularity since its launch last 2011. It allows users to send photos or short video clips to each other that disappear as soon as the user as seen it. It is now becoming a tool for SMEs as it helps make the customer more loyal.

Top4's insight:

Social media is a very big help for small businesses as it advertises the business at minimal cost and it also aids on market research and planning.

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Leading insurance player Allianz collaborates with Tech giant

Leading insurance player Allianz collaborates with Tech giant | Banking and Financial Services | Scoop.it

Allianz and Panasonic have joined forces to launch a solution integrating insurance, assistance and technology to protect peoples’ homes. They are venturing on a home monitoring and control system with home protection services provided by Allianz Global Assistance, the assistance subsidiary of Allianz Worldwide Partners.

Top4's insight:

This new product from Allianz and Panasonic is the best solution for people who wants their home monitored all the time with the least effort on their end. 

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Launch of Cyber Security Solution announced

Launch of Cyber Security Solution announced | Banking and Financial Services | Scoop.it

BAE Systems Applied Intelligence has announced the launch of a cloud-based cyber security solution for businesses and organisations based in Australia and New Zealand. This system aims to protect businesses from one of the biggest threats; the humble email.

Top4's insight:

This kind of product is what businesses need to protect their invaluable information and data while they can focus their energy on other risks and opportunities for their business.

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Insurance industry's biggest worry

Insurance industry's biggest worry | Banking and Financial Services | Scoop.it

According to a research conducted by PricewaterhouseCoopers, cyber risk is the biggest risk that Australian insurers face. As insurers keep a vast amount of information that is valuable to cyber criminals, including medical records, banking and credit card details, and personal identity data, they are faced with the challenge of digital attacks. Another ongoing challenge is will be ensuring defences keep pace with the threats as they evolve.

Top4's insight:

Data security is a very critical aspect in the insurance industry as the public greatly relies on their services.

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Finance gurus share tips on banks and credit cards

Finance gurus share tips on banks and credit cards | Banking and Financial Services | Scoop.it

ROSS Greenwood, David Koch and Paul Clitheroe, the three wise men of finance shares their views on credit cards and how banks profit significantly on rates, surcharges and fees. They are also questioning the banks for offering to lend more to persons who already were not able to pay their existing debts.

Top4's insight:

Young people are vulnerable to the banks schemes on credit card. As the banks target them, they should be wise and responsible towards borrowing and spending.

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Australia gets first usage of MasterPass

Australia gets first usage of MasterPass | Banking and Financial Services | Scoop.it

MasterCard's been working on a whole new method to make payments for some time now, but now the credit corporation looks like they abandon their PayPass project and bring forward a service that is ready for everyone to use. The name of the service? MasterPass.

MasterCard will use their experiences with previous projects, and use that experience in its quest for success, with the firm being quite confident that by creating relationships with the right companions  and technology partners, it can turn the "promise of a digital future" into a reality.

Top4's insight:

MasterCard's new service could be very helpful in nowadays business environment, while it will make payments easier and faster. That is what is especially necessary in international transactions.

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Thomson Reuters launches Elektron services in China and Australia » Banking Technology

Thomson Reuters launches Elektron services in China and Australia » Banking Technology | Banking and Financial Services | Scoop.it

Elektron Managed Services gives us the option to quickly scale our businesses and access a great load of useful data and services while lowering the marginal costs of deploying and managing equivalent solutions in-house, Said Qu Hongjie, executive director of China equities.

Chinese financial firms are also being targeted by Thomas Reuters. Especially firms that are expanding and outsourcing their overseas businesses as the Chinese government continues its path towards making the renminbi a major global currency. The service is already available in Hong Kong, as well as other major cities in the pacific.

Top4's insight:

Thomson Reuters has rolled out its Elektron managed data services in China and Australia. The service will be deployed in co-location with the Australian Securities Exchange in Sydney as well as through a data centre in Shanghai, China.

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